BILL ANALYSIS Ó
SB 471
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Date of Hearing: July 13, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
SB
471 (Pavley) - As Amended June 2, 2015
SENATE VOTE: Not relevant
SUBJECT: Water, energy, and reduction of greenhouse gas
emissions: planning.
SUMMARY: This bill specifies that reductions of greenhouse gas
(GHG) emissions associated with the water sector, including
water use, supply, and treatment, are eligible investments from
the Greenhouse Gas Reduction Fund (GGRF). Requires the
California Energy Commission (CEC) to study water-related energy
use in California. Requires the State Water Resources Control
Board (SWRCB) to develop a grant and loan program to fund
projects that result in water-related GHG emission reductions.
EXISTING LAW, under the California Global Warming Solutions Act
of 2006 (AB 32):
1)Requires the California Air Resources Board (ARB) to adopt GHG
emissions reduction measures to achieve a reduction in
statewide GHG emsisions to the 1990 level.
2)Requires ARB to prepare and approve a Scoping Plan, on or
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before January 1, 2009 and once every five years thereafter,
for achieving the maximum technologically feasible and
cost-effective reductions in GHG emissions from sources of
emissions by 2020.
3)Establishes the GGRF in the State Treasury; requires all
funds, except for fines and penalties, collected pursuant to a
market-based mechanism be deposited in the GGRF; and, requires
the Department of Finance, in consultation with ARB and any
other relevant state agency, to develop a three-year
investment plan for the GGRF.
4)Requires that the GGRF be used to facilitate GHG emissions
reductions in this state consistent with AB 32. Requires that
annual budget appropriations from the GGRF be consistent with
the investment plan.
THIS BILL:
1)States legislative intent relating to the nexus between water,
energy, and GHG emission reductions.
2)Specifies that reductions of GHG emissions associated with the
water sector, including water use, supply, and treatment, are
eligible investments from the GGRF.
3)Requires CEC, in cooperation with the State Water Resources
Control Board (SWRCB), ARB, the Public Utilities Commission
(PUC), and the Department of Water Resources (DWR), to conduct
a study of water-related energy use in the state. In
conducting the study, requires CEC to:
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a) Hold a minimum of two public workshops to allow input
from stakeholders;
b) Include any source-specific data; and,
c) Identify existing data gaps.
4)Requires SWRCB, in cooperation with CEC, ARB, PUC, and DWR, to
establish a grant and loan program for water projects that
result in the net reduction of water-related GHG emissions.
5)Establishes the following categories for grant funding:
a) Precision irrigation;
b) Infrastructure improvements that will help deliver
on-demand water for precision application;
c) Local water solutions that reduce net energy use;
d) Clean energy generation in the water sector;
e) Leak detection;
f) Water appliance efficiency; and,
g) Water monitoring software.
6)Requires that any public funds made available for the program
to private water companies regulated by the PUC be used for
the benefit of ratepayers or the public.
7)Authorizes SWRCB to adopt guidelines and regulations necessary
to implement the bill.
FISCAL EFFECT: Unknown
COMMENTS:
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1)Author's statement.
Some of [the state's] water-energy related climate
pollution is already covered by the state's cap-and-trade
program by the electricity generation sector. However,
water suppliers, treaters, distributors, and end users
currently lack the information and opportunity to do their
part in advancing our climate and water conservation goals.
As a result, a variety of projects that might reduce
climate pollution from the water system do not currently
qualify for project funding from the GGRF.
SB 471 will establish a program to allow a variety of water
projects to qualify for funding from the GGRF, provided
these projects reduce emissions in furtherance of our state
climate goals.
2)Water and energy use. According to the CEC, water-related
energy use in California consumes approximately 20% of the
state's electricity and 30% of the state's non-power plant
natural gas (natural gas not used to produce electricity).
The water sector uses electricity to pump, treat, transport,
deliver, and heat water. The CEC also found that the most
energy-intensive uses of water in California are associated
with end uses by the customer (e.g., heating, processing, and
pressurizing water), and 75% of the electricity and nearly
all of the natural gas use related to water in California is
associated with water heating. Additionally, expected
increases in groundwater pumping, water treatment, and water
recycling, due to drought conditions in the state, mean the
energy intensity of water will likely increase.
3)Executive Order. Executive Order B-29-15 (Brown), issued
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April 1, 2015, directed state agencies to perform various
actions regarding saving water to respond to severe drought
conditions in the state, including directing the CEC, jointly
with DWR, to implement a Water Energy Technology program to
deploy innovative water management technologies that achieve
water and energy savings and GHG emissions reductions. The
Executive Order also directed the CEC, jointly with DWR, to
implement a limited statewide appliance rebate program for
inefficient appliances.
4)Funding for water and GHG emissions. Emergency drought relief
legislation, SB 103 (Budget Committee, Chapter 2, Statutes of
2014) appropriated $10 million to the California Department of
Food and Agriculture (CDFA) for water and energy efficiency
projects in the agricultural sector, and $30 million to DWR to
implement a grant program to support local water-use
efficiency projects and energy efficiency projects at State
Water Project facilities.
The 2014-15 Budget allocates $832 million in GGRF revenues to a
variety of transportation, energy, and resources programs
aimed at reducing GHG emissions. Various agencies are in the
process of implementing this funding. The budget agreement
specifies how the state will allocate most cap-and-trade
auction revenues in 2015-16 and beyond. For all future
revenues, the legislation appropriates 25% for the state's
high-speed rail project, 20% for affordable housing and
sustainable communities grants, 10% to intercity capital rail
projects, and 5% for low-carbon transit operations. The
remaining 40% is available for annual appropriation by the
Legislature.
Of that 40% available for annual appropriation, the Governor's
proposed 2015-16 cap-and-trade expenditures would appropriate
$60 million to DWR and CDFA for water and energy efficiency
projects, $30 million to CEC and DWR for rebates to replace
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inefficient appliances, and $30 million to CEC and DWR for the
Water and Energy Technology Program, as described in the
Executive Order.
5)Drought funding. In response to California's ongoing drought,
AB 91 (Budget and Fiscal Review), Chapter 1, Statutes of 2015
allocated just over $1 billion for drought-related activities.
Among other things, this bill:
a) Accelerates a $131.7 million appropriation to SWRCB to
fund water recycling projects, including feasibility
studies, demonstration projects, and larger scale water
recycling projects.
b) Accelerates a $135.5 million appropriation to SWRCB to
improve access to drinking water for disadvantaged
communities and help small communities pay for wastewater
treatment.
c) Accelerates a $20 million appropriation from the GGRF to
DWR for state and local water use efficiency programs that
reduce GHG emissions.
d) Appropriates $10 million from the GGRF to CDFA for
agricultural water efficiency projects that reduce GHG
emissions.
6)Suggested amendments. The author's office intends for the
grant and loan program to be funded by the GGRF; however, the
bill does not specify a funding source or appropriate any
funds. The committee may wish to amend the bill to specify
that the program shall be funded upon appropriation by the
Legislature from the GGRF.
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For clarity, the committee may wish to amend the bill to clarify
that grants and loans are available for in-state projects.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Sanitation Agencies
California Coastkeeper Alliance
California League of Conservation Voters
California Municipal Utilities Association
City of Agoura Hills, Mayor Weber
City of Pasadena's Water and Power Department
Clean Water Action
Coastal Environment Rights Foundation
East Bay Municipal Utility District
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Humboldt Baykeeper
Inland Empire Waterkeeper
Klamath Riverkeeper
LA River Revitalization Corporation
Las Virgenes Municipal Water District
Los Angeles Waterkeeper
Mono Lake Committee
Monterey Coastkeeper
Orange County Coastkeeper
Russian Riverkeeper
San Diego Coastkeeper
San Francisco Baykeeper
San Luis Obispo Coastkeeper
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Santa Barbara Channelkeeper
Sonoma County Water Agency
Southern California Edison
The Climate Registry
The Energy Coalition
The River Project
TreePeople
Union of Concerned Scientists
USGBC
U.S. Green Building Council
Union of Concerned Scientists
Ventura Coastkeeper
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Opposition
None on file
Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)
319-2092